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Royal Nickel Corp. (TSX:RNX) announced that Salt Lake Mining Pty Ltd. (SLM) has sold its Widgiemooltha and Carr Boyd exploration projects for AU$1.6 million in cash, plus a future contingent payment of AU$0.6 million. Royal Nickel is set to acquire a 67-percent stake in SLM.
Royal Nickel Corp. (TSX:RNX) announced that Salt Lake Mining Pty Ltd. (SLM) has sold its Widgiemooltha and Carr Boyd exploration projects for AU$1.6 million in cash, plus a future contingent payment of AU$0.6 million. Royal Nickel is set to acquire a 67-percent stake in SLM.
As quoted in the press release:
All conditions of the sale have been satisfied and funds deposited in SLM’s bank account.
The sale has a significant cash flow impact for SLM as the company had budgeted approximately A$1 million in annual statutory holdings costs in respect of the divested properties. The combined cost savings and additional cash of approximately A$2.6 million will provide SLM with additional flexibility in funding the continued development of the Beta Hunt gold resource, which is targeted to generate sustained annual production in excess of 45 koz of gold when mining in the Western Flanks zone begins in the second half of 2016.
Mark Selby, president and CEO of Royal Nickel, commented:
RNC supports the prudent decision to divest of non-core exploration projects by SLM at this time. This transaction will put SLM in a stronger position to focus on the continued development of the Beta Hunt Mine and continuing to ramp up gold production to meet our 2016 guidance of 35 – 45 koz and nickel production of 3.5-4.5 kt on a 100% basis.
Click here to read the full Royal Nickel Corp. (TSX:RNX) press release.